Australian Tax Office to Focus on Capital Gains From Crypto Assets – Taxes Bitcoin News
The Australian Tax Agency has listed crypto-related profits among several priority areas where more effort is needed to ensure proper reporting. The authority reminded taxpayers that they must calculate any capital gain or loss from the sale of digital coins and tokens and record it in their tax returns.
Australian Taxpayers Warned They Should Report Crypto Earnings
The Australian Taxation Office (ATO) has announced four key areas it will focus its attention on this year. These include record keeping, work-related expenses, and rental property income and deductions. Ensuring better control over the reporting of capital gains from property, stocks, and crypto assets completes the list of stated priorities.
“The ATO is targeting problem areas where we see people making mistakes,” Assistant Commissioner Tim Loh said. The senior official stressed that taxpayers should rethink their requests and respect the applicable rules.
The Tax Authority warns Australians that if they dispose of crypto assets in this fiscal year, including non-fungible tokens (NFTs), they will need to establish any capital gain or loss and record it on their tax returns . Lo commented:
Crypto is a popular type of asset and we expect to see more capital gains or losses reported on tax returns this year.
The Deputy Commissioner noted that the ATO is aware that many Australian residents are buying, selling or trading digital assets, so it is important that people understand what this means for their tax obligations. He also reminded taxpayers that they cannot offset crypto losses with their wages and salaries.
The agency’s decision to focus on reporting and taxing gains from crypto investments comes after a recent study found that more than one million Australians, or 5% of people aged 18 and above, own one or more cryptocurrencies. According to its authors from market research firm Roy Morgan, young Australian males are the most likely cryptocurrency holders.
Do you expect Australia to take in more money in crypto-related capital gains tax revenue next year? Tell us in the comments section below.
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